In Jordan, the population is turning to cryptocurrency

A young accountant in Jordan, Ahmed al-Hindi, has invested in cryptocurrencies in a country where the unemployment rate is 50%, according to the World Bank. The Jordanian Labor Watch revealed in October 2021 that 140,000 workers lost their jobs due to the COVID-19 pandemic. Approximately 129,000 citizens trade in cryptocurrencies, according to a report released by Triple A, a cryptocurrency payment company. Ahmed al-Hindi invested $ 12,000, sometimes earning $ 2,000 in a few months, while at other times, earning nothing. He says that knowledge of English is the key to following the news surrounding cryptography. The governor of the Central Bank reiterated on January 30 that cryptocurrencies continue to be banned. The ban was justified in many ways. Investor protection, fear of criminal activity and exchange rate fluctuations were cited as some of the justifications. In addition, there is no regulatory framework to appeal to a court of law if you are the victim of a crime or fraud involving cryptocurrencies. Mufleh Akl, former head of the Association of Banks in Jordan, says: "Investing in cryptocurrencies is useless. It is a game of chance and desperation for the lack of profitable investment opportunities. We have to educate young people that some companies commit fraud through investments in these currencies ”.

The nation's ban on cryptocurrencies forced Jordanians to be creative. They use brokers abroad or pay cash to currency owners, who transfer cryptocurrencies into their accounts. A financial analyst, specializing in foreign exchange, says lawmakers are viewing crypto activity with caution and anticipation, regardless of the current ban. He believes that cryptocurrency is "a golden opportunity to attract billions of investments to the country, the country has excellent infrastructure in which they must be invested". Socio-economic expert, Hussam Ayesh, says Jordanians are looking for additional income with minimal effort. It is mainly young and technologically savvy people who have turned to cryptocurrencies as an alternative. He said: "There is a large digital infrastructure and some have the opportunity to raise thousands of dinars from businesses that use the digital infrastructure, such as gaming on YouTube. Those who turn out to be unemployed are actually earning a large income by trading these currencies. " Millions of dollars are locked up in crypto assets, despite the lack of regulation. There is currently no protection for traders, which could mean greater risk if the cryptocurrency market drops dramatically.